ACCENDRA HEALTH INC/VA/ 10-K

Item 2. Properties As of December 31, 2022, we operated facilities located throughout the world that handle production, assembly, research, quality assurance testing, distribution, packaging and sales of our products, as well as office and warehouse space. We also leased customer service centers as well as small offices for sales personnel across the United States. In addition, we lease space on a temporary basis from time to time to meet our inventory storage needs. As of December 31, 2022, our Patient Direct segme nt had over 300 locations to serve patients, including 277 branch locations that are capable of reaching over 90% of the U.S. population, six centers of excellence aligned with specific mail order product categories , as well as regional distribution and repair centers, customer service and billing centers, a national pharmacy and a biomedical center for the repair, maintenance and distribution of patient equipment. We own our corporate headquarters building, and adjacent acreage, in Mechanicsville, Virginia, a suburb of Richmond, Virginia. The following table provides a summary of our principal facilities: Owned Leased Other (1) Total Location Production 6 11 — 17 United States, Europe, Honduras, Mexico and Thailand Distribution 1 52 1 54 United States and India Storage — 26 — 26 United States, Honduras and Mexico Office 1 36 — 37 United States, Asia, Australia, Canada and Europe Branch — 277 — 277 United States Total 8 402 1 411 (1) Represents a distribution center owned by a customer. We regularly assess our business needs and make changes to the capacity and the location of our facilities. We believe that our facilities are adequate to carry on our business as currently conducted. A number of leases are scheduled to terminate within the next several years. We believe that, if necessary, we could find facilities to replace these leased premises without suffering a material adverse effect on our business.